Tenet Profit Up 7.2% on Higher Admissions

Tenet Healthcare Corp., the second-biggest U.S. hospital chain, said its fiscal second-quarter earnings rose 7.2% as patient admissions increased at its 113 hospitals. Profit from operations rose to $134 million, or 43 cents a share, in the quarter ended Nov. 30, from $125 million, or 40 cents, a year earlier. Santa Barbara-based Tenet has moved aggressively to deal with unpaid bills and slow payments from insurers, even suing a managed health-care company. It’s had some success in turning around eight bankrupt Philadelphia hospitals it bought in 1998, cutting supply costs and raising admissions by better marketing their services. They still aren’t as profitable as its other facilities, though. Tenet was expected to earn 41 cents, the average estimate of analysts polled by First Call/Thomson Financial Corp. Tenet said admissions at hospitals open more than one year rose by 1.2% and total admissions rose 2.8%. Revenue rose to $2.78 billion from $2.56 billion. Tenet shares fell 94 cents to close at $26.31 on the NYSE.